21 Principles of Trading Every Day Trader Must Master in 2025
If you’re serious about mastering the markets, these 21 principles of trading are your new playbook.
After 21+ years in the trenches and thousands of trades, I’ve distilled the best lessons into these foundational principles. They’ll help you avoid traps, trade with structure, and think like a professional. If you want to go from amateur to pro trader in 2025, this is how.
Let’s dive into the 21 principles of trading.
The 21 Principles of Trading
1. Price Is Fractal
Patterns repeat across all timeframes. Whether you trade a 1-minute chart or the daily, structure remains king. Choose the timeframe that fits your style.
2. Price Only Does Three Things
Every chart is either trending, chopping, or trapping. Learn to recognize this early—it’s your first edge.
3. Trap Traders = Big Opportunity
The best trades happen when the crowd is wrong. Spot the traps, and you’ll print while others panic.
4. Structure Over Speed
Ignore flashy candles. Focus on patterns and bases that form structure. Structure wins over hype.
5. Anchor Bias to Higher Timeframes
Use the daily chart for direction. Zoom in for entries. That’s how pros enter with confidence.
6. Volume Confirms Price
A breakout without volume is noise. Volume shows conviction. No juice? No trade.
7. Weak Context = Failed Breakouts
No base? No explosion. If a breakout isn’t supported by structure and tight EMAs, skip it.
8. Wait for Compression Before Expansion
Tight bases lead to big breakouts. Let price get quiet before it gets loud.
9. Watch the Moving Averages
When EMAs align and slope upward, you’ve got structure. Choppy EMAs = avoid.
10. Be a Risk Manager First, Trader Second
Your primary job is capital preservation. Trading comes second.
11. Fixed Risk, Dynamic Size
Risk the same amount every trade. Size flexes based on the stop. That’s how you stay alive.
12. Know Your Exit Before Entry
Plan exits before you click buy. Use support/resistance to guide your targets.
13. Trade the Setup, Not the Feeling
Feelings lie. Patterns don’t. Don’t trade based on FOMO or gut—trade structure.
14. No Pattern, No Trade
Write down the pattern before entry. If it’s not clear, skip it. Every trade must have a name.
15. Let A+ Setups Pay You
When you find a monster, let it run. A+ setups deserve A+ size and patience.
16. Micro Losses Build Confidence
Take small losses quickly. They’re tuition, not failure. Don’t protect your ego—protect your account.
17. Let the Market Validate the Setup
No matter how good your chart looks, the market must agree. Trade in alignment with the cycle.
18. Trading Is a Career, Not a Game
This isn’t gamified finance. Treat trading like a business. Study. Prepare. Execute.
19. You Need Repeatable Processes, Not Predictions
You don’t need to predict the market. You need routines and playbooks that win over time.
20. Discipline Is a Muscle
Discipline gets stronger with reps. The more rules you follow, the easier they get. Don’t skip your workout.
21. The Market Owes You Nothing
Entitlement kills traders. Show up, outwork your peers, and earn it every day.
Bonus: Build Your Trading Foundation With Us
Every one of these trading principles is built into our 60-Day Live Bootcamp—designed to take you from beginner to pro in just two months. If you’re serious about trading in 2025, this is where you start.
If anyone is interested in learning about candle stick patterns check out this blog post I just did! Candle Stick Patterns PDF
